Quite how much credence can be attached to the prognostications of doom by “senior industry executives” – unwilling to attach their names to their opinions – is to say the least uncertain.
Campaign magazine, however, appears to believe the nameless ones, according to whom cutbacks over the next two quarters by major advertisers such as Unilever, Procter & Gamble and Ford will trigger a fall of up to 12% in TV ad revenues.
Given that the first seven weeks of 2001 have already witnessed a 9% slump in advertising income, their predictions are hardly cutting edge futurology. However, media folk with their feet on the ground attribute this decline less to recession or world economic slowdown than to last year’s inflation of Q1 and Q2 TV ad revenues by international sporting bonanzas such as Euro 2000 and the final fling of cash-profligate dotcoms.
According to Campaign, the anonymous seers predict a further fall in television revenues by 8%-12% over the next six months due to cutbacks by larger advertisers.
This will restore ad volumes to around the level of 1999.
News Source: CampaignLive (UK)